Urban Outfitters, Inc. (NASDAQ:URBN), a leading lifestyle products
and services company which operates a portfolio of global consumer
brands comprised of the Anthropologie, Free People, FP Movement,
Terrain, Urban Outfitters, Nuuly and Menus & Venues brands,
today announced net income of $53 million and record first quarter
earnings per diluted share of $0.56 for the three months ended
April 30, 2023.
Total Company net sales for the three months
ended April 30, 2023, increased 5.9% to a record $1.11 billion.
Total Retail segment net sales increased 4%, with comparable Retail
segment net sales increasing 5%, partially offset by a 1% negative
impact of foreign currency translation. The increase in Retail
segment comparable net sales was driven by high single-digit
positive growth in digital channel sales and low single-digit
positive growth in retail store sales. By brand, comparable Retail
segment net sales increased 17% at the Free People Group and 13% at
the Anthropologie Group and decreased 13% at Urban Outfitters.
Wholesale segment net sales decreased 11% driven by a 14% decrease
in Free People Group wholesale sales due to a decrease in sales to
department stores and specialty customers, while Urban Outfitters
wholesale sales increased by $1 million. Nuuly segment net sales
increased by $28.6 million driven by a 118% increase in our
subscribers as of the current quarter end versus the end of the
prior year’s comparable quarter.
“We are pleased to report record first quarter
sales and earnings per share driven by a 5% increase in comparable
Retail segment sales, strong growth in Nuuly Rent and a significant
improvement in gross margins,” said Richard A. Hayne, Chief
Executive Officer. “We are equally pleased that Q1’s sales strength
has continued quarter-to-date,” finished Mr. Hayne.
Net sales by brand and segment for the three-month
periods were as follows:
|
Three Months Ended |
|
|
April 30, |
|
|
2023 |
|
|
2022 |
|
Net sales by brand |
|
|
|
|
|
Anthropologie Group |
$ |
473,640 |
|
|
$ |
419,677 |
|
Urban Outfitters |
|
308,708 |
|
|
|
357,702 |
|
Free People Group |
|
273,735 |
|
|
|
245,758 |
|
Nuuly |
|
51,470 |
|
|
|
22,849 |
|
Menus & Venues |
|
6,121 |
|
|
|
5,948 |
|
Total Company |
$ |
1,113,674 |
|
|
$ |
1,051,934 |
|
|
|
|
|
|
|
Net sales by segment |
|
|
|
|
|
Retail Segment |
$ |
1,004,101 |
|
|
$ |
963,435 |
|
Wholesale Segment |
|
58,103 |
|
|
|
65,650 |
|
Nuuly Segment |
|
51,470 |
|
|
|
22,849 |
|
Total Company |
$ |
1,113,674 |
|
|
$ |
1,051,934 |
|
For the three months ended April 30, 2023, the
gross profit rate increased by 260 basis points compared to the
three months ended April 30, 2022. Gross profit dollars increased
14.8% to $371.2 million from $323.3 million in the three months
ended April 30, 2022. The increase in gross profit rate was
primarily due to higher initial merchandise markups at all three
brands primarily driven by lower inbound transportation costs.
Additionally, the gross profit rate benefited from lower
merchandise markdowns at the Anthropologie Group and Free People
Group brands.
As of April 30, 2023, total inventory decreased
by $39.6 million, or 6.3%, compared to total inventory as of April
30, 2022. Total Retail segment inventory decreased by 5% primarily
due to better inventory control supported by a more reliable supply
chain. Wholesale segment inventory decreased by 23% in line with
the reduction in wholesale sales.
For the three months ended April 30, 2023,
selling, general and administrative expenses increased by $22.8
million, or 8.2%, compared to the three months ended April 30,
2022, and expressed as a percentage of net sales, deleveraged 59
basis points. The deleverage in selling, general and administrative
expenses as a rate to sales was primarily related to higher
compensation costs, including higher incentive-based compensation
costs due to improved Company performance. The dollar growth in
selling, general and administrative expenses was due to higher
compensation costs, including higher incentive-based compensation
costs due to improved Company performance, as well as increased
marketing expenses to support increased sales and customer
growth.
The Company’s effective tax rate for the three
months ended April 30, 2023 was 27.1%, compared to 28.7% in the
three months ended April 30, 2022. The decrease in the effective
tax rate for the three months ended April 30, 2023 was attributable
to the ratio of foreign taxable earnings to global taxable earnings
and the favorable impact of general business credits in the current
year.
Net income for the three months ended April 30,
2023 was $52.8 million and record first quarter earnings per
diluted share was $0.56.
On August 22, 2017, the Company’s Board of
Directors authorized the repurchase of 20 million common shares
under a share repurchase program; all shares were repurchased and
the authorization was completed by the end of June 2022. On June 4,
2019, the Company’s Board of Directors authorized the repurchase of
20 million common shares under a new share repurchase program.
During the year ended January 31, 2023, the Company repurchased and
subsequently retired 4.7 million common shares for approximately
$112 million. During the three months ended April 30, 2023, the
Company did not repurchase any common shares. As of April 30, 2023,
19.2 million common shares were remaining under the program.
During the three months ended April 30, 2023,
the Company opened 5 Free People Group stores (including 2 FP
Movement stores) and closed 5 retail locations including: 3 Urban
Outfitters stores, 1 Anthropologie Group store and 1 Menus &
Venues restaurant. During the three months ended April 30, 2023, 1
Urban Outfitters franchisee-owned store was opened.
Urban Outfitters, Inc. offers lifestyle-oriented
general merchandise and consumer products and services through a
portfolio of global consumer brands comprised of 260 Urban
Outfitters stores in the United States, Canada and Europe and
websites; 237 Anthropologie Group stores in the United States,
Canada and Europe, catalogs and websites; 193 Free People stores
(including 33 FP Movement stores) in the United States, Canada and
Europe, catalogs and websites, 10 Menus & Venues restaurants, 7
Urban Outfitters franchisee-owned stores and 2 Anthropologie Group
franchisee-owned stores as of April 30, 2023. Free People, FP
Movement and Urban Outfitters wholesale sell their products through
department and specialty stores worldwide, digital businesses and
the Company’s Retail segment.
A conference call will be held today to discuss
first quarter results and will be webcast at 5:15 pm. ET at:
https://edge.media-server.com/mmc/p/3urrq5ur.
This news release is being made pursuant
to the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995. Certain matters contained
in this release may contain forward-looking statements. When used
in this release, the words “project,” “believe,” “plan,” “will,”
“anticipate,” “expect” and similar expressions are intended to
identify forward-looking statements, although not all
forward-looking statements contain these identifying words. Any
one, or all, of the following factors could cause actual financial
results to differ materially from those financial results mentioned
in the forward-looking statements: overall economic and market
conditions (including current levels of inflation) and worldwide
political events and the resultant impact on consumer spending
patterns and our pricing power, the difficulty in predicting and
responding to shifts in fashion trends, changes in the level of
competitive pricing and promotional activity and other industry
factors, the effects of the implementation of the United Kingdom's
withdrawal from membership in the European Union (commonly referred
to as “Brexit”), including currency fluctuations, economic
conditions and legal or regulatory changes, any effects of war,
including geopolitical instability and impacts of the war between
Russia and Ukraine and from related sanctions imposed by the United
States, the European Union, United Kingdom and others, terrorism
and civil unrest, natural disasters, severe or unseasonable weather
conditions (including as a result of climate change) or public
health crises (such as the coronavirus (COVID-19)), labor shortages
and increases in labor costs, raw material costs and transportation
costs, availability of suitable retail space for expansion, timing
of store openings, risks associated with international expansion,
seasonal fluctuations in gross sales, response to new concepts, our
ability to integrate acquisitions, risks associated with digital
sales, our ability to maintain and expand our digital sales
channels, any material disruptions or security breaches with
respect to our technology systems, the departure of one or more key
senior executives, import risks (including any shortage of
transportation capacities or delays at ports), changes to U.S. and
foreign trade policies (including the enactment of tariffs, border
adjustment taxes or increases in duties or quotas), the closing or
disruption of, or any damage to, any of our distribution centers,
our ability to protect our intellectual property rights, failure of
our manufacturers and third-party vendors to comply with our social
compliance program, risks related to environmental, social and
governance activities, changes in our effective income tax rate,
changes in accounting standards and subjective assumptions,
regulatory changes and legal matters and other risks identified in
our filings with the Securities and Exchange Commission. The
Company disclaims any intent or obligation to update
forward-looking statements even if experience or future changes
make it clear that actual results may differ materially from any
projected results expressed or implied therein.
(Tables follow)
|
|
URBAN OUTFITTERS, INC. Condensed
Consolidated Statements of Income (amounts in thousands,
except share and per share data) (unaudited) |
|
|
|
|
Three Months Ended |
|
|
April 30, |
|
|
2023 |
|
|
2022 |
|
Net sales |
$ |
1,113,674 |
|
|
$ |
1,051,934 |
|
Cost of sales |
|
742,443 |
|
|
|
728,633 |
|
Gross profit |
|
371,231 |
|
|
|
323,301 |
|
Selling, general and administrative expenses |
|
299,848 |
|
|
|
277,064 |
|
Income from operations |
|
71,383 |
|
|
|
46,237 |
|
Other income (loss), net |
|
1,019 |
|
|
|
(1,989 |
) |
Income before income taxes |
|
72,402 |
|
|
|
44,248 |
|
Income tax expense |
|
19,585 |
|
|
|
12,715 |
|
Net income |
$ |
52,817 |
|
|
$ |
31,533 |
|
|
|
|
|
|
|
Net income per common share: |
|
|
|
|
|
Basic |
$ |
0.57 |
|
|
$ |
0.33 |
|
Diluted |
$ |
0.56 |
|
|
$ |
0.33 |
|
|
|
|
|
|
|
Weighted-average common shares outstanding: |
|
|
|
|
|
Basic |
|
92,474,688 |
|
|
|
95,479,927 |
|
Diluted |
|
93,821,292 |
|
|
|
96,347,211 |
|
|
|
|
|
|
|
|
|
|
|
|
|
AS A PERCENTAGE OF NET SALES |
|
|
|
|
|
Net sales |
|
100.0 |
% |
|
|
100.0 |
% |
Cost of sales |
|
66.7 |
% |
|
|
69.3 |
% |
Gross profit |
|
33.3 |
% |
|
|
30.7 |
% |
Selling, general and administrative expenses |
|
26.9 |
% |
|
|
26.3 |
% |
Income from operations |
|
6.4 |
% |
|
|
4.4 |
% |
Other income (loss), net |
|
0.1 |
% |
|
|
(0.2 |
%) |
Income before income taxes |
|
6.5 |
% |
|
|
4.2 |
% |
Income tax expense |
|
1.8 |
% |
|
|
1.2 |
% |
Net income |
|
4.7 |
% |
|
|
3.0 |
% |
|
|
URBAN OUTFITTERS, INC. Condensed
Consolidated Balance Sheets (amounts in thousands, except
share data) (unaudited) |
|
|
|
|
April 30, |
|
|
January 31, |
|
|
April 30, |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
171,655 |
|
|
$ |
201,260 |
|
|
$ |
71,640 |
|
Marketable securities |
|
209,777 |
|
|
|
181,378 |
|
|
|
187,563 |
|
Accounts receivable, net of allowance for doubtful accounts of
$1,453, $1,496 and $1,153, respectively |
|
105,589 |
|
|
|
70,339 |
|
|
|
97,058 |
|
Inventory |
|
590,326 |
|
|
|
587,510 |
|
|
|
629,953 |
|
Prepaid expenses and other current assets |
|
223,894 |
|
|
|
197,232 |
|
|
|
221,905 |
|
Total current assets |
|
1,301,241 |
|
|
|
1,237,719 |
|
|
|
1,208,119 |
|
Property and equipment, net |
|
1,201,506 |
|
|
|
1,187,735 |
|
|
|
1,149,772 |
|
Operating lease right-of-use assets |
|
921,893 |
|
|
|
959,436 |
|
|
|
967,639 |
|
Marketable securities |
|
86,156 |
|
|
|
102,844 |
|
|
|
179,458 |
|
Deferred income taxes and other assets |
|
281,874 |
|
|
|
195,178 |
|
|
|
137,322 |
|
Total Assets |
$ |
3,792,670 |
|
|
$ |
3,682,912 |
|
|
$ |
3,642,310 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
$ |
263,558 |
|
|
$ |
257,620 |
|
|
$ |
296,673 |
|
Current portion of operating lease liabilities |
|
233,085 |
|
|
|
232,672 |
|
|
|
227,533 |
|
Accrued expenses, accrued compensation and other current
liabilities |
|
431,033 |
|
|
|
400,082 |
|
|
|
395,949 |
|
Total current liabilities |
|
927,676 |
|
|
|
890,374 |
|
|
|
920,155 |
|
Non-current portion of operating lease liabilities |
|
845,643 |
|
|
|
884,696 |
|
|
|
913,380 |
|
Deferred rent and other liabilities |
|
168,669 |
|
|
|
115,159 |
|
|
|
112,854 |
|
Total Liabilities |
|
1,941,988 |
|
|
|
1,890,229 |
|
|
|
1,946,389 |
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity: |
|
|
|
|
|
|
|
|
Preferred shares; $.0001 par value, 10,000,000 shares authorized,
none issued |
|
— |
|
|
|
— |
|
|
|
— |
|
Common shares; $.0001 par value, 200,000,000 shares authorized,
92,677,835, 92,180,709 and 94,434,621 shares issued and
outstanding, respectively |
9 |
|
|
9 |
|
|
9 |
|
Additional paid-in-capital |
|
15,133 |
|
|
|
15,248 |
|
|
|
— |
|
Retained earnings |
|
1,878,878 |
|
|
|
1,826,061 |
|
|
|
1,740,508 |
|
Accumulated other comprehensive loss |
|
(43,338 |
) |
|
|
(48,635 |
) |
|
|
(44,596 |
) |
Total Shareholders’ Equity |
|
1,850,682 |
|
|
|
1,792,683 |
|
|
|
1,695,921 |
|
Total Liabilities and Shareholders’ Equity |
$ |
3,792,670 |
|
|
$ |
3,682,912 |
|
|
$ |
3,642,310 |
|
|
|
URBAN OUTFITTERS, INC. Condensed
Consolidated Statements of Cash Flows (amounts in
thousands) (unaudited) |
|
|
|
|
|
Three Months Ended |
|
|
|
April 30, |
|
|
|
2023 |
|
|
2022 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
Net income |
|
$ |
52,817 |
|
|
$ |
31,533 |
|
Adjustments to reconcile net income to net cash provided by (used
in) operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
23,879 |
|
|
|
26,702 |
|
Non-cash lease expense |
|
|
50,859 |
|
|
|
47,980 |
|
Provision for deferred income taxes |
|
|
2,457 |
|
|
|
7,420 |
|
Share-based compensation expense |
|
|
7,735 |
|
|
|
7,102 |
|
Amortization of tax credit investment |
|
|
3,976 |
|
|
|
— |
|
Loss on disposition of property and equipment, net |
|
|
222 |
|
|
|
85 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
Receivables |
|
|
(35,030 |
) |
|
|
(34,109 |
) |
Inventory |
|
|
(1,649 |
) |
|
|
(64,511 |
) |
Prepaid expenses and other assets |
|
|
(35,045 |
) |
|
|
(22,913 |
) |
Payables, accrued expenses and other liabilities |
|
|
22,257 |
|
|
|
(15,184 |
) |
Operating lease liabilities |
|
|
(56,201 |
) |
|
|
(63,662 |
) |
Net cash provided by (used in) operating activities |
|
|
36,277 |
|
|
|
(79,557 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
Cash paid for property and equipment |
|
|
(32,904 |
) |
|
|
(73,723 |
) |
Cash paid for marketable securities |
|
|
(74,101 |
) |
|
|
(18,703 |
) |
Sales and maturities of marketable securities |
|
|
69,456 |
|
|
|
106,043 |
|
Initial cash payment for tax credit investment |
|
|
(20,000 |
) |
|
|
— |
|
Net cash (used in) provided by investing activities |
|
|
(57,549 |
) |
|
|
13,617 |
|
Cash flows from financing activities: |
|
|
|
|
|
|
Share repurchases related to share repurchase program |
|
|
— |
|
|
|
(62,052 |
) |
Share repurchases related to taxes for share-based awards |
|
|
(7,850 |
) |
|
|
(6,636 |
) |
Tax credit investment liability payments |
|
|
(468 |
) |
|
|
— |
|
Net cash used in financing activities |
|
|
(8,318 |
) |
|
|
(68,688 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
(15 |
) |
|
|
(307 |
) |
Decrease in cash and cash equivalents |
|
|
(29,605 |
) |
|
|
(134,935 |
) |
Cash and cash equivalents at beginning of period |
|
|
201,260 |
|
|
|
206,575 |
|
Cash and cash equivalents at end of period |
|
$ |
171,655 |
|
|
$ |
71,640 |
|
|
|
Contact: |
Oona McCullough |
|
Executive
Director of Investor Relations |
|
(215)
454-4806 |
Urban Outfitters (NASDAQ:URBN)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Urban Outfitters (NASDAQ:URBN)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024